What are NASDAQ's listing requirements for companies?

NASDAQ has specific listing requirements that companies must meet to be considered for listing on their exchange. These requirements are designed to ensure that companies maintain a certain standard of financial health, governance, and operational viability. NASDAQ operates several tiers of listings, including the NASDAQ Global Select Market, NASDAQ Global Market, and NASDAQ Capital Market, each with its own criteria. For the NASDAQ Global Select Market, companies are typically required to meet stringent financial metrics, which include maintaining a minimum bid price of one dollar per share, having a minimum market capitalization of five million dollars for equity securities, and demonstrating a strong financial performance over recent periods. Additionally, companies must have at least three market makers post quotes for their shares and comply with NASDAQ's corporate governance standards. The NASDAQ Global Market has slightly different requirements, where the minimum market capitalization can be lower, and there are variations in the financial thresholds companies need to meet. It also calls for a minimum bid price of one dollar and at least two market makers. For companies that are smaller, the NASDAQ Capital Market has less rigorous requirements, including a minimum market capitalization of two million dollars, a minimum bid price of one dollar, and similar governance standards. In addition to financial metrics, NASDAQ emphasizes the importance of corporate governance practices. Companies must have a board of directors with independent members, an audit committee, and procedures for shareholder meetings. These requirements help ensure that listed companies are held to high standards, providing investors with a sense of security when trading. For more precise and detailed information regarding the latest requirements and processes, it is recommended to visit the official NASDAQ website, where they frequently update relevant content.